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Wednesday, 21 May 2014

The "Cow" (GUH) Joins In

Two days ago, GUH announced that it has proposed to acquire 99.46% of Million Crest Sdn Bhd, who owns approximately 46 acres of land in Mukim 14 & 15 in Seberang Perai Tengah & Selatan.

This acquisition will cost GUH RM69.68mil, which means the land will be acquired at about RM35 per sq ft, slightly lower than Eco World's RM40 psf in the area.

The freehold land is described as located in Simpang Ampat along & fronting the federal road connecting Bukit Tengah and Simpang Ampat, and is about 2.5km from Bukit Tambun Toll. It covers both SPT & SPS.

Base on the land features above, the land should be somewhere around the river near Permatang Tinggi that separates both SPT & SPS.

It is also mentioned that there are as many as 221 occupiers residing at one corner of the land and they will be relocated.

So I guess that it should be located next to and behind the old Boon Beng primary school in the old town of Simpang Ampat. If not, it may be further north around Permatang Tinggi light industrial area.

Possible GUH's land location

A master plan for a mixed development on the land has been earlier approved by Town Planning Department in the year of 1995 & 1996. It is still valid until today.

The initial launch of this project is planned in the first half of 2015. It is reported by The Star that it comprises 322 units of landed properties on 16-acre site.

However, in Bursa announcement released by GUH, the first 2 phases that worth RM238mil will include 218 units of 2-storey shop offices, 153 units of single storey semi-d and 104 units of 3-storey terrace.

I think this is unlikely because 218 units of 2-storey shop office in this area should be sold at close to RM218mil already in year 2015.

From GUH's Bursa announcement

Meanwhile, Eco World has earlier revealed that it is planning an eye-popping RM920mil mixed development EcoMeadows in its 60-acre land in Bukit Tambun, Simpang Ampat in 2015.

There will be terraces, superlinks, semi-ds and condominiums in which the price would start from RM600k! Excuse me, the RM600k is for terrace or condominium?

I think the RM600k minimum price is for double storey terrace, as condominium in this area should be launched in the last phase.

Eco World will even build a mini mall in its EcoMeadows.

So, Eco World will compete with GUH in Simpang Ampat next year. If both of them sell their properties at sky high prices, then it might benefit Tambun Indah's who acquired its land there at a mere RM11-14 psf.